Creditors and Bankruptcy/charge off/judgment


My husband bought a piece of land several years ago, which he ended up being unable to pay for due to being laid off (long story) It was on his credit report as a charge off for quite some time until he finally received a judgment against him earlier this year. We are in the process of declaring bankruptcy due to this because the charge off amount and the amount he was sued for was somewhere in the 100k. (The principal was around 80k, plus interest and fees) Now, looking at his current credit report, it still shows the original charge off amount as $80,310 and it also shows the judgment which is only $18,960. We are confused as to what the settling amount is. When we received the judgment letter it did state the entire amount of a total of about $100k, so why is the amount with the judgment so low? Does this mean if we pay the $18k he would be "clean" and it will be done? We don't want to declare bankruptcy if we can simply pay off the 18k (somehow) and move on.

Leon Bayer
Leon Bayer  

I'm happy to help you with this.

Here's my best guess. The judgment probably reflects the balance due after giving your husband credit for their resale of the land. I would guess the current amount due is $18,960.

Here's what I suggest. You contact them, and if the judgment balance is within your ability to pay, you can get it resolved. If it turns out to be more than you can pay, you still have the option to consider bankruptcy.


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Creditors and Bankruptcy

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Los Angeles Bankruptcy Attorney Leon Bayer


I can answer all questions relating to debt collection, credit reporting problems, credit scores, bankruptcy, debt settlements, debt settlement scams, and dealing with debt collectors. For many years I have been one of your volunteer experts for the topic "Bankruptcy Law". I would like to receive more questions. I'm thinking that many relevant questions get asked under this catagory as well as my own. See my stats, below: Los Angeles Bankruptcy Lawyer Leon D. Bayer U.S. Available View Profile Ask A Question View Past Answers Knowledgeability9.96 Clarity of Response9.93 Politeness9.97 Response Time(hr)14.6 --Last 90 Days(hr)7.6 Total Questions1119


34 years as a practicing bankruptcy attorney, published book author on topics of bankruptcy and foreclosure. See,


BA degree, J.D., admitted to California Bar in 1979.

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President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

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Over 15,000 bankruptcy cases.

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